Average asking prices drop for the third consecutive month

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New sellers coming to market in September dropped their average asking prices for the third consecutive month. These price falls demonstrate the impact of the summer’s sporting distractions and highlight a lack of strength in a housing market that was not sufficiently robust to withstand them.

New sellers dropped their asking price aspirations by 0.6% (-£1,402) compared with August, and by 4.6% (-£11,377) in the last quarter. September 14th marked the fifth anniversary of the run on Northern Rock and the visible beginnings of the credit-crunch in the UK. Uncannily, the average price of newly marketed property is virtually the same as September 2007, though an overall ‘prices unchanged’ headline masks some of the extreme changes that have occurred in different sectors of the UK housing market over the last five years.

Miles Shipside, housing market analyst at Rightmove comments:
“Summer sellers have had some very stiff competition, not only from competing sellers chopping their prices but also from the Olympics extravaganza which has been more compelling for many than viewing property. Property coming to market is £11,000 cheaper than it was three months ago and there will be many hoping that this gives a boost to the autumn selling season if buyers leave their starting blocks in a hurry and join the traditional rush to see in the festive season in a new home”.

September 2011 saw sellers increase their prices by 0.7%, so this year’s fall of 0.6% is a marked turnaround in pricing tactics, especially with estate agents keen to attract fresh stock to showcase after a summer holiday slowdown exaggerated by the Olympics and Paralympics. This year’s extended summer selling-recess has perhaps delayed the onset of any autumn flurry which might have pushed up sellers’ pricing confidence. The net result is that prices are now virtually the same as September last year, up by just 0.7% (£1,719), and market conditions remain very similar.

Shipside observes:
“2012’s extended summer holiday period has left new sellers’ asking prices almost the same as a year ago and, intriguingly, five years ago too. In truth, the state of the housing market is little different now to this time last year, and prices have stagnated as neither buyers or sellers have been forced to change their behaviours in sufficient quantities to stimulate greater activity. However, back in 2007 few would have believed that house prices would still be the same in five years’ time. This would have been in the context of the previous five year period to 2007 seeing an average rise of 55%. Equally hard to predict would be the extreme changes the housing market has undergone. The global squeeze in the credit markets has seriously affected the man on the street’s access to mortgage financing, permanently hampering their ability to finance their journey onto and up the housing ladder”.

3 Responses to “Average asking prices drop for the third consecutive month”

  1. tricia thompson Says:

    The only way for the global economy to grow is for a major boost to the housing. This will only happen if mortgages become easier to obtain and a return of the 95% mortgages to be on offer for first time buyers.
    Rightmove should start a campaign and challange the government to source ways to stimulate the housing market, by helping first time buyers which will kick start the chain reaction. After all aren’t the big banks are owned by the tax payer! It’s not rocket science! reduce the fat cat salary’s of bankers to retain profit levels,re-introduce mortgages whereby the average 1st time buyer can save for a more realistic deposit, instead of all theis nonsense that parents and grandparents use their pension pots! Duh slap of head!! isn’t the government banging on how everyone needs a healthy pension pot because the state pension isn’t enough. The mind boggles at these so called acedemics running the country.
    Smaller deposits for first time buyers all the way.

  2. Mark Goodacre Says:

    Estate agents ae not realy helpng the situation by advising to put houses on the market for 2007 prices. It is the perception of the public that house prices have reduced since this period and with the access to websites that provide sale prices thoughout the years people are reluctant to pay these asking prices. These initiall marketed prices are then commonly reduced in a bid to increase selling potential when in reality it has the opposite effect of making the buyer think there must be somehting wrong with the property of waiting for furter reductions. this is causing particular stagnation people wanting to move onto there next house. A step change accoss the board on newly marketed huse prices and less reductions would add more confidence o the market

  3. jackie Pennington Says:

    I cannot understand why rents are so high, i pay 60 per cent of my income in private rental, i was led to believe the value of the house determines the rental value. Not so, i viewed 3 houses and they were all neglected no curtain rails overgrown gardens, and high rents, who decides the rental value?

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